Chronicle Case Study

Global Tier 1 bank significantly improves revenues within their FX Automated Trading Business 

 Key Points: 

  • ROI 3 months 

  • Highly configurable by client to respond market conditions 

  • Co-developed in minimal time 

Background:  

A leading Tier 1 FX trading operation was using an “off the shelf” FX pricing and trading solution which was limiting the business opportunity as implementation of new trading strategy was very slow and market opportunities where therefore lost.

 Challenge: 

The Incumbent system presented several challenges including: 
  • Strategies: There was an inability to adjust strategies in house causing delays in implantation, trading losses and missed opportunities.  
  • Throughput: This was occurring at peak times and the client was only able to trade the top of book and not take advantage of full book strategies. 
  • Latencies: In order to improve its position amongst its competitors, the business required more depth of information, a smooth end to end process and the ability to be amongst the fastest to market. The incumbent system was unable to achieve these targets. 
  • Flexibility: Any issues identified by the client with the solution required off-site investigation, repair and deployment resulting in delays in ensuring the maximum efficiency of the solution. 

 

Solution: 

Chronicle Software worked with the client to co-develop in an agile manner a bespoke Java Based FX Pricing, Trading and Auto Hedger based on our design methodology incorporating a Micro Services architecture. This solution is fully backed up and has advanced fail over strategies which ensures very high levels of production stability. 
 
6 weeks of planning (including commercials and contracting) allowed for the system to be built and deployed within six months. Embedded in the solution are the Enterprise versions of Chronicle Queue and Chronicle map as well as a number of our Chronicle Microservices and is underpinned by our Chronicle Microservices Framework. 

Results of the Case Study: 

The solution proved extremely successful and produced a ROI within 3 months. The main factors behind this were: 
  • Strategies: 
The Chronicle solution allowed the client to adjust trading strategies “on the fly” meaning they could respond to prevailing trading conditions. 
Next to the trader sits a developer who can immediate replace the current strategy with a new one, test it in UAT and get it in production in very short order. 
  • Throughput: 
The Chronicle solution increased message throughput by up to ten times to over 50K messages per second allowing a wider range of strategies that utilize the whole book. 
  • Latencies: 
The Chronicle solution reduced latency by tenfold ensuring orders hit the market in an efficient and timely manner. 
  • Flexibility: 
Chronicle’s preferred engagement model of co-development allowed for  
  • Greenfield development of high performance trading software, 
  • shortening time to market by utilising our existing libraries and most importantly  
  • a significant amount of knowledge transfer.  
The latter means that the solution can be supported, and strategies updated, by an in-house team of developers. 
Chronicle Software provided the client with easy to use Java libraries and working with various stakeholders within the business produced market leading FX trading and hedging system. 

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